Glen Innes Severn Council will consider a revised Special Rate Variation (SRV) proposal at its meeting on 19 June. The revised recommendation follows a six-week community engagement process, “Shaping Tomorrow”, which closed on 6 June 2025.
Financial Pressures Prompt Action
The Council has reported significant financial pressure in its General Fund, forecasting an average annual operating deficit of $4.7 million from 2025/26 without a rate increase.
To help address this, Council has implemented a series of savings measures, identifying more than $600,000 in efficiencies, reducing staff recruitment, and deferring some projects. Additional business improvement measures worth $65,000 annually for five years, and a $350,000 annual boost from a technical depreciation review, have also been identified. However, Council says more revenue is needed to achieve financial stability and avoid service cuts or possible state government intervention.
Community Feedback Informs Revised Scenario
A phone survey conducted by Micromex found 87% of residents were aware of the proposed SRV. While 64% of residents surveyed expressed a preference for no SRV due to financial strain, 88% said it was important or very important that Council continue to maintain and renew infrastructure.
Revised SRV and Long-Term Plan
In response, Council’s revised “Sustainability Revised scenario” proposes a permanent cumulative SRV of 48.3% over three years: 21.5% in 2026/27, 12.0% in 2027/28, and 9.0% in 2028/29. This revised plan delays Council’s financial sustainability target by one year, to 2029/30.
Key Changes in the Revised Plan
- Pensioner support: Pensioner concession increased from $250 to $300;
- Reduced spending: Annual funding for economic development, health, and housing reduced from $500,000 to $300,000;
- Village investment: Up to $200,000 per year committed for village improvements in Red Range, Deepwater, Emmaville, and Glencoe;
- Town Hall works deferred: Improvements to Glen Innes Town Hall postponed until grant funding is secured;
- Waste charges: Proposed 100% increase in domestic waste management charges scaled back to 25% per year for two years.
General Manager Bernard Smith said, “This recommendation to Council achieves the requirement of financial sustainability, reflects the concerns of the community, but still enables the region to grow and be a desirable and liveable community.”
Independent Review of Ratepayer Capacity
Council also received a “Capacity to Pay Report” by Morrison Low on 26 May. The report is an independent financial assessment that evaluates the ability of households and businesses across the region to manage potential rate increases.
It found there is some general capacity for higher residential rates within the Glen Innes Severn LGA; however, areas such as Glen Innes town west, Emmaville, and Deepwater were identified as having lower capacity, with indicators of financial vulnerability such as mortgage and rental stress.
The report also suggests that local businesses and farms may be better positioned to absorb increased rates compared to similar councils.
The Capacity to Pay Report also said “noting there is limited financial capacity scattered through the LGA, Council needs to be mindful of the impact on rate increases in a period of cost of living pressures.”
Overdraft Facility Faces Replacement by Interest-Only Loan
Another key item to be considered at the June Council meeting is the proposed conversion of the current $5 million overdraft facility into a five-year interest-only term loan. The overdraft drew criticism from some councillors recently after it was revealed that it had been implemented without first seeking formal Council approval.
Recent discussions between Council staff and Council’s auditors indicated that, although the overdraft arrangement complies with accounting standards, it may not provide a “true and fair” representation of the financial statements.
The proposed loan would incur an additional operating expense of around $27,000 per year, and the repayment strategy remains unclear. According to the proposal, “It is assumed that at the five-year point, additional unrestricted funds stemming from the Special Rate Variation (subject to approval by IPART and the percentage approved) will facilitate discharge of the loan principal.”
Meeting Details
The Council meeting will be held on Thursday 19 June at 9am in the William Gardner Conference Room at the Glen Innes Severn Learning Centre. Live streaming of the meeting will be available on the Council website: www.gisc.nsw.gov.au
